Long-term IKN reader Tweetie put this comment under last night’s quick post on the Newcrest/Pretium deal:
Can you give us a list of what’s left to buy for Newmont and Barrick?
Must be a short list.
Great Bear? Kinross? Evolution?
Good question, so here are my ideas plus a couple of others stolen from two mailpals last night. As the overriding factor in the current wave of M&A is jurisdiction, we avoid LatAm/Africa picks in this shortlist and think Tier1 targets only. The following doesn’t preclude buyouts of juniors in other places, so don’t jump down my throat about a whole bunch of single asset companies with large gold projects in riskier zones:
- Great Bear: Barrick has telegraphed this one, picking GBR as a M&A target now is almost too easy. I doubt it’ll be the next to fall, but the eventual sale is facepalm obvious.
- Ascot Resources: A smart mailpal mentioned this one last night, I agree.
- Argonaut Gold: I’m long this one, AR has quietly pivoted its asset base away from Mexico and to North America, plus growth project Magino is the real deal.
- OceanaGold: Woefully managed until recently, OGC might suit BTG more than Barrick or Newmont due to Didipio, but there’s a lot of asset value to add now and a major might consider Haile as its turnaround play.
- Wesdome: More speculative, WDO isn’t cheap on a per oz basis but its address(es) cannot be beaten.
Aside those five names, the house left-field idea is Barrick buying the 40% of Pueblo Viejo that it doesn’t own from NEM. I can’t see Kinross being bought and I’ve got no opinion on Evolution. That’s my shortlist, anyone else got ideas?